by justin dill, jacob lindamood, david stauffer, mihai ... · becton dickinson bd has been a player...
TRANSCRIPT
Becton Dickinson
● BD has been a player in the MedTech industry since it was founded in 1897, originally selling needles and syringes
● Today the company produces 80% of syringes globally, but this is only a small part of their product base
● 3 segments○ BD Medical○ BD Diagnostics○ BD Biosciences
Company Overview
Becton Dickinson
● BD was the 12th largest MedTech company in 2014
● Global Presence○ Locations on every major continent○ Over 30 subsidiaries, in the U.S. and
abroad● BDX had a share price of $152.67 as of
December 1, 2015● Heavy focus on charitable donation and
sustainability goals
Company Overview
Retractable Technologies Lawsuits
● 385,000 needle-sticks a year
○ 80% of market
● Retractable Technologies
○ Superior product
■ VanishPoint
Retractable Technologies Lawsuits
2002 Lawsuit
● Decided not to licenses VanishPoint
● Retractable Technologies was pushed out of market
○ Group Purchasing Organizations (GPOs)
● Sherman Antitrust Act
○ Settled for $100 million
2002 Lawsuit
2007 Lawsuit
● Federal safety laws○ Not up to the market standard○ Sharpness and accuracy
● Public perception of VanishPoint
● Forced to pay $340 million
BD is dedicated to producing saferand more reliable products
2007 Lawsuit
Strengthen Medication
Management Improve Quality of Patient Care
Opportunities in New &
Developed Markets
Meaningful Value for
Shareholders
Why the $12.2B Merge?Why the $12.2B Merger?
Strengthen Medication Management
● $20B Market
● Drug preparation in the
pharmacy
● Dispensing on the hospital floor
● Administration to the patient
● Subsequent monitoring
Strengthen Medication Management
Improve Quality of Patient Care
● Addressing hospital’s unmet needs
● Increase efficiencies
● Reduce medication administration
errors
● Improve patient and healthcare
worker safety
Improve Quality of Patient Care
CareFusion Lawsuits and Recalls
Kickbacks
● Dr. Charles Denham received $11.6 million to promote ChloraPrep.
● CareFusion agreed to a settlement in the amount of $40.1 million ○ Kickbacks○ Marketing the product for unapproved uses
CareFusion Lawsuits and Recalls
Class I Recalls
● Avea Ventilator ○ Recalled in May of 2015
● Alaris Syringe Pump○ Recalled in June of 2015 ○ Malfunction in software and hardware in regards to stopping/starting fluid
delivery
CareFusion Lawsuits and Recalls CareFusion Lawsuits and Recalls
Recommendation 1
Becton Dickinson should fully integrate CareFusion into their
operations under the BD brand
● Transform the merger into an acquisition
● Expedite on the safety improvement process
● Streamlining through this integration
Recommendation 1
Recommendation 1
● Cambridge Trust Company
○ Investment company
○ Sustainable & Responsible Investing ( SRI )
○ First hand research
● Strong financial position
Recommendation 1
Recommendation 2
Create promotional campaign focusing on improvements in Becton
Dickinson’s safety and reliability of its products through investments in
regulation training programs.
● Targeted to the general population
● Promote continuous improvement
● Press releases & traditional ads
Recommendation 2
Recommendation 2
● Press releases
○ Explaining the details of the improvements
○ Business & Healthcare newspapers
● Advertising campaign
○ Portray safety & trust to consumers
○ Television commercial & print ads
Recommendation 2
Implementing both recommendations will address the safety, reliability and trust problems created by the merger with
CareFusion.
Implementation